Diff: Advance Fee Fraud

'''Advance fee fraud''' is a type of fraud in which a victim is promised money, credit, goods, work, inheritance, investment returns or another benefit, but is first asked to pay a fee. After the payment is made, the promised benefit does not arrive, or the fraudster invents further fees.

The fee may be described as tax, insurance, customs duty, administration, legal costs, verification, courier charges, a deposit or an account release fee. The wording changes, but the structure is the same: the victim pays first and receives nothing genuine in return.

* loan fee fraud;

* fake inheritance or lottery claims;

* fake job and work-from-home offers;

* fake rental deposits;

* recovery scams after earlier fraud;

* fake grants or compensation;

* romance fraud involving travel, medical, customs or emergency fees;

* investment or crypto withdrawals blocked until a fee is paid.

The scheme can be simple or highly detailed. Some fraudsters use fake documents, copied company names, professional-looking emails and staged phone calls from people pretending to be lawyers, banks, couriers or officials.

Loan fee fraud is a common financial version. The FCA describes it as a scam where a person is conned into paying a fee for a loan. Fraudsters may ask for an upfront payment as a deposit, administrative fee, insurance or broker fee. Once the fee is paid, the loan is never provided.

Genuine authorised firms may sometimes charge fees, but there are rules about what information they must provide. A request for fast payment by bank transfer, voucher or cryptoasset is a strong warning sign.

The victim may continue paying because they want to recover what they have already lost. This sunk-cost pressure is a common part of the fraud.

== Fraud Act Context ==

In England and Wales, many advance fee frauds can be charged under the [[Fraud_Act_2006|Fraud Act 2006]], depending on the facts. Fraud by false representation is especially relevant where the criminal dishonestly claims that a loan, inheritance, prize, job, investment or release process is real.

The criminal label depends on the evidence, the jurisdiction and the route chosen by investigators and prosecutors. The practical warning sign is simpler: a promised benefit that requires repeated upfront payments is highly suspicious.

A person applies for a loan online and is contacted by a fake lender. They are told to pay a GBP 150 insurance fee before release. After payment, the lender asks for a second fee and no loan is paid.

Fraud can be reported to Report Fraud in England, Wales and Northern Ireland. In Scotland, reports should be made through Police Scotland. If bank details or payments have been shared, the victim should contact their bank as soon as possible.

* [[Investment_Scams]]

* [[Romance_Scams]]

* [[Technical_Support_Scam]]

* [https://www.cps.gov.uk/prosecution-guidance/fraud-act-2006 Crown Prosecution Service: Fraud Act 2006]

* [https://www.legislation.gov.uk/ukpga/2006/35/section/2 Fraud Act 2006, section 2]

[[Category:Criminal law]]